SIB's reported PAT increased 3% YoY to INR1.15b, beating our estimate by 11%,as provisions of INR1.5b were 25% below our estimate. PPoP declined28%/12% QoQ/YoY, led by a sharp fall in other income (treasury gains declined91% YoY due to an increase in bond yields, while the base quarter had low yields due to the impact of demonetization). NII grew 1%/22% QoQ/YoY, driven by 5%/17% QoQ/YoY advances growth and22bp YoY NIM expansion. However, on a sequential basis, NIM contracted 7bpto 2.88% with a fall in MSME yields,as the bank is increasingly looking at greater collateral cover. Opex growth was controlled at 5%/13% QoQ/YoY(employee expenses were up 6% YoY). CI ratio increased to 50.6% (v/s 41.3% in2QFY18). Loan growth of 5%/17% QoQ/YoY was driven by robust growth in retail (+25%YoY) and SME (+25% YoY), while the corporate book grew 3% YoY, in line with the bank's retail-focused strategy. Share of corporate book has reduced to35.5% of advances compared to 40% in the year-ago period.